Don't Lose Money That Belongs to You!

The Earned Income Tax Credit is designed to help working families keep more of what they earn. Unfortunately, EITC claimants lose money when they use paid tax preparers coupled with "refund anticipation loans" (RALS) to file their federal returns.

Although paid tax preparers market RALs with the promise to "get you your refund quick," there is a high price to be paid for the service. The Brookings Institution estimates that the average cost for a tax filer who uses a tax return preparation service and RAL is about $220. Because many low income families are less likely to have a bank account, these people pay addition fees to have IRS check or loan check cashed.

Here is something you can do to get all of the money that belongs to you:

• Get Free Help Filling Out the Tax Forms

The IRS offers free tax preparation through a program called Volunteer Income Tax Assistance (VITA). VITA sites are open across the nation from late January through April 15. Electronic filing (having a return completed by computer to get a faster turnaround on a refund) is available in some VITA locations.

If a taxpayer files electronically, and has a bank account (checking or savings) where the refund can be deposited directly, the refund from the IRS will usually arrive within eight to ten days.

The NWLS Website, www.nwls.org/FreeTaxHelp.htm, has a list of VITA sites near you